According to The Australian Financial Review today, as values peak, a growing number of east coast development sites are being listed for sale with those carrying a development permit attracting premium pricing.
Sydney-based Alpha Fund has listed a DA-approved site in Sydney's Waterloo, near the future new township of Green Square.
The fund purchased the 1436 square metre site at 713-717 Elizabeth Street in 2013 for $12.5 million and spent the last two years pursuing a development application (DA) permit for a four-storey apartment block with 36 units and a communal rooftop terrace with views of the Sydney CBD. One third of the apartments have already been sold off the plan.
In Brisbane, Metro Property Development is marketing its Montpelier Road site in the inner north eastern suburb of Bowen Hills, which has a DA permit underway and for which it paid about $25 million in late 2014. Deloitte Real Estate's James Walsh and Ray White's Rick Bird are marketing the site which can yield 509 apartments across five eight-storey towers.
"Two years ago, there wasn't a premium on sites with a DA, people were happy to wait and get their DA. It was like the gold rush, people were waiting for things to go up in value," JLL's Sam Brewer who is marketing the Waterloo site, said.
"But now the market has stabilised."
Despite the changes, prices of sites remained high and at a premium. No one is losing money, not even in broader western Sydney where speculations of a housing crash are rife, CBRE's Alex Mirzaian said.
"I have 100 inquiries for fives sites, raw or with DA," he said.
"Yes, apartment sales are slowing, you could sell 200 in one weekend in the past, now it's about 30 to 40. And it is true that there is a certain point when developers had bought their sites for too much . . . the whole feasibility of the site is then thrown out of the window."
But there is still a rush of developers who are looking for ready-to-build sites to keep the building pipeline flowing, all the agents confirmed.

According to The Australian Financial Review today, Japan's Jera Co said it's in talks with other LNG companies to create an alliance of buyers that account for more than one-third of global trade.
Jera, a joint venture between Tokyo Electric Power Co and Chubu Electric Power Co, is seeking to cooperate with Korea Gas Corp and China National Offshore Oil Corp on liquefied natural gas procurement and investment, said Hiroki Sato, vice president of the company's fuel buying department. A memorandum of understanding may be signed as early as Friday, he said.
A deal between the companies may lead to the creation of a potentially dominant bargaining alliance as buyers band together to take advantage of new supply from Australia to the US that's tilting negotiating power in favour of consumers.
"We can work hard to lower prices by using our large volumes," Sato said in an interview in Tokyo Thursday. "The bottom line is we should work together to reduce costs in Japan, as well as the rest of Asia."
The deal will benefit smaller companies outside the group as lower prices would be passed on to other buyers, Sato said. The alliance members would also be able to swap or trade cargoes among themselves to help balance supply between their operations.
Asian spot LNG prices fell below $US5 per million British thermal unit for the first time last month, extending its tumble from a high of $US19.70 in February 2014, according to New York-based Energy Intelligence. Cargoes bought through long-term contracts, which are traditionally linked to oil, may fall to a low of about $US4.10 per million Btu by June, Credit Suisse Group said in a report February 5.
Jera has said the combined Tokyo Electric and Chubu Electric purchases would be about 40 million metric tons a year of LNG. Korea Gas imported 31.4 million tons in 2015 and China National Offshore imported 14.1 million tons in 2014, according to the companies. Global LNG trade rose 1 per cent in 2014 to 239.2 million tons, according to the latest annual report by the International Group of Liquefied Natural Gas Importers.

According to The Asahi Shimbun today, Honda Motor Co. said it expects two-thirds of its global sales to be from vehicles powered by electricity by 2030, as part of efforts to meet tightening global environmental regulations.
Honda President Takahiro Hachigo indicated during a Feb. 24 news conference in Tokyo that Honda is determined to move away from gasoline-powered cars.
Honda’s goal is to halve the automaker’s total carbon dioxide (CO2) emissions by 2050 compared with 2000 levels.
“We want to commit to reducing CO2 emissions through electrification,” Hachigo said.
Hachigo added that the percentage of Honda’s hybrid vehicles (HV) and plug-in hybrid vehicles (PHV) will be raised to more than 50 percent of total sales.
PHVs, which can be charged from an electrical outlet at home, is “the focus” of the electrification effort, according to Hachigo.
Honda will sell its highly efficient PHV that can run more than 100 kilometers on electric power in North America by 2018, and later in Japan.
The percentage of its fuel-cell vehicles (FCV) and electric vehicles (EV) will also be increased to 15 percent of the total.
Honda’s new EV model will hit North American showrooms in 2018. An FCV that will be available in Japan for leasing in March will be introduced in the United States at the end of 2016.
Currently, electrically powered vehicles, mainly HVs, make up around 5 percent of Honda’s global sales.

According to The Nikkei Asian Review today, roughly eight in 10 foreign-affiliated companies in Japan intend to step up investment here in the next five years, citing lower costs of doing business than elsewhere in Asia, a survey shows.
Their conception of the Japanese business environment is improving, the Japan External Trade Organization reported Tuesday. The government-backed organization sent questionnaires to around 1,000 such businesses last July and August, receiving 150 replies.
On plans for the next five years, 77% of companies said they would expand their business, while nearly 19% would "maintain the status quo."
Companies were also asked about obstacles to doing business in Japan. "High business costs," which topped the list in the last survey back in 2013, sank to fifth place this time around. Office rents and employee housing costs in Japan's urban centers are declining relative to Hong Kong, Singapore and other major Asian cities, supporting higher investment.
Around three-quarters, or 74%, of respondents said they expected to increase employment in Japan. Nearly 68% of that group said they would add one to nine employees.
Japan's overall business environment "hasn't changed much," about 62% of respondents said. Around 31% said it was getting somewhat better. Factors including regulatory reform and simplified administrative procedures were mentioned as improvements.

According to The Nikkei Asian Review today, Japan's venture companies are increasingly popular with investors of late, with unlisted companies raising more than 140 billion yen (US$1.23 billion) last year, up about 10% on the year and recovering to levels last seen before the 2008 global financial crisis, according to a survey by Japan Venture Research.
In the aftermath of the meltdown, from 2009 through 2013, the amount of cash flowing to ventures was stuck in the 60 billion yen to 70 billion yen range. The recovery has been slow in Japan: investment in U.S. venture companies had exceeded its precrisis high by 2011.
JVR's estimate is based on press releases, changes in capital and other data for roughly 8,000 companies.
Japanese venture investment in 2015 was about where it was in 2006. Later that year, the dot-com bubble burst in the wake of the collapse of Livedoor, which was brought down by a securities fraud. Accounting malpractice at another Japanese venture also contributed to the prolonged slump in investment, starting in 2007.
Those days appear over. Many companies have recently launched venture capital funds. In an effort to import technology and ideas from outside, some established concerns are looking to start new businesses with venture companies. Financial institutions are also more willing to put money on the table in a low interest rate environment.
Park24, Japan's largest parking lot operator, set up a venture capital entity, Times Innovation Capital, last July. Five months after its launch, the unit made its second investment in a venture business working in the Internet of Things area. The company is planning to invest 3 billion yen in total.
Last year, corporate venture capital funds invested 24.8 billion yen in new businesses in Japan, according to Recof, a Tokyo-based consultancy specializing in mergers and acquisitions. That was a jump of 430% on the year.
Spiber, a tech venture based in Yamagata Prefecture, has received capital from a sportswear maker, among others.
Spiber, a company based in Japan's northern Yamagata Prefecture that makes synthetic spider silk, raised about 10 billion yen through a third-party share placement. Investors include sportswear maker Goldwin. Spiber's durable elastic fibers have applications in sportswear.
Until recently, investors have been reluctant to include tech-oriented ventures in their portfolios. These take time and money to turn a profit. But an official at one venture company said money has begun flowing into the sector. The uptrend looks set to continue, even amid the broader stock market rout. JVR said that 14 venture companies have raised more than 300 million yen from the beginning of the year through Feb. 16, an increase compared with the previous year.
An official at Mitsubishi UFJ Capital said the assessed values of invested companies have held up, thanks to the large inflow of money. University-backed venture funds are boosting their investment activity, with help from government subsidies. This assistance should encourage the flow of new money into venture businesses in 2016.
Kyoto University announced in January the launch of a new fund with around 16 billion yen in assets under management. The Tokyo University of Science and a fund-management arm of Astmax jointly launched a fund worth 4 billion yen on Feb. 15. The University of Tokyo is planning to use 41.7 billion yen from government on venture investments.

According to The Australian Financial Review today, the Sydney residential property auction market has charged ahead, while Melbourne and Brisbane trod water over the weekend.
Many areas in Sydney have revived from the post-Christmas lull, belying forecasts that the market would cool this year.
Although a little lower than the 78.1 per cent of the previous week, this weekend 77 per cent of the properties put to auction were sold, according to Corelogic RP Data, showing local demand – owner occupiers and investors – was strong.
"The buying activity is very area-specific though, with northern beaches getting strong demand while places like Frenchs Forest have been quite quiet," Belle Property's Kirsten Bertram said.
But it is still early in the year and the true test will be the next "Super Saturday" on March 19, when the market has had a "little way from Christmas", Corelogic RP Data's Kevin Brogan warned.
"The signs are encouraging but volumes are still pretty low [in Sydney]," he said.
Melbourne has been more consistent between the two major housing markets, reporting an auction clearance rate in the range of 70 to 77 per cent over the last four weeks, compared with Sydney's volatile 45 to 78 per cent. Volumes were also more steady than Sydney's and comparable with last year's numbers, Mr Brogan added.
Its clearance rate on the weekend was 73 per cent.
Melbourne buyer's agent Christopher Koren said while auctions in areas such as inner-city North Carlton and North Fitzroy were hot, the private treaty market, which has the majority of sales, was subdued in Melbourne.
The third-biggest market, Brisbane, which is not a big auction market, remained steady but with significantly higher volumes, Mr Brogan said.

According to The Nikkei Asian Review today, Japan's wind-power capacity is expected to grow threefold as the two leading developers invest tens of billions of yen in new installations.
That would bring the total to the equivalent of 10 nuclear reactors.
Eurus Energy Holdings and Electric Power Development, better known as J-Power, each plan to invest around 60 billion yen (US$528 million) in new facilities by 2020. Together, they accounted for roughly a third of total wind-power capacity in Japan as of fiscal 2014, based on Nikkei estimates, ranking first and second, respectively.
The unlisted Eurus, a joint venture of trading house Toyota Tsusho and Tokyo Electric Power, or Tepco, plans to install 200,000kW of new capacity by 2020, raising its total to 850,000kW. It will begin work this year on a 40,000kW-class wind farm in Akita Prefecture in northern Japan and has plans for a facility in Kochi Prefecture, southwest of Kobe.
J-Power also plans a 200,000kW capacity increase, which would take it to 600,000kW. It will build new installations on the northern island of Hokkaido and in Ehime Prefecture, south of Hiroshima.
To achieve its target for reducing greenhouse-gas emissions, the government seeks to raise renewable-energy sources, excluding hydropower, from around 3% of Japan's total electricity output to around 15% by fiscal 2030.
Wind is a more efficient source of power than sunlight, providing roughly double the rate of capacity usage. Wind turbines can be placed offshore as well as on land. They are not subject to the same limits on location as geothermal power plants, nor do they require the woodchips or other fuel used by biomass-burning facilities.
Yet wind power satisfied a mere 0.5% of electricity demand in Japan in 2014, compared with 39% in Denmark, 9.6% in Germany, 4.4.% in the U.S. and 2.8% in China, according to the International Energy Agency.
Wind-farm development in Japan has lagged partly because of the four-to five-year approval process, which has included since 2012 a mandatory environmental-impact assessment. A feed-in tariff policy that guarantees fixed purchase prices for renewable-energy output began that year. Wind accounts for a mere 3% of the capacity approved for construction under this plan, compared with 93% -- about 80 million kilowatts -- for easier-to-install solar.
Eurus and J-Power will move ahead with wind-farm projects that have cleared the environmental assessment stage. The nation's total installed wind-power capacity is expected to go from just over 3 million kilowatts at the end of 2015 to 10 million kilowatts in 2020, thanks partly to progress in the development pipeline, the Japan Wind Power Association estimates.
The government is moving to correct the bias toward solar power, in part by cutting the purchase price for output from "mega-solar" installations while holding steady the price available to large-scale wind farms.
Foreign investment is also on the move. Pattern Energy, a major U.S. wind-farm developer, plans to install 1 million kilowatts of wind-power capacity in Japan by 2020. It is preparing to begin work on a 126,000kW facility, the biggest in Japan to date, in the northern prefecture of Aomori.

According to The Australian Financial Review today, New Zealander Stephen Hampson thinks Australian universities need help commercialising their ideas, so he's bringing his company Powerhouse Ventures here to assist.
Mr Hampson said the biggest problem is universities do not have sufficient funding to take their intellectual property from the basic idea to a point where it can be sold.
"The issue that universities and researchers face is that you have to find the capital and expertise to commercialise an idea," he said.
"Powerhouse provides that access to capital and the expertise in terms of working out the business plan in the early stages."
Since beginning investing in 2010, Powerhouse has helped establish 19 New Zealand companies, with its most successful business, Hydroworks, turning over between $10 million and $20 million, with a 50 per cent growth rate year-on-year.
Mr Hampson said the business needed to raise the extra capital to keep funding the companies in its portfolio. It plans to raise $20 million ahead of an ASX listing as part of its expansion into Australia.
Powerhouse is already listed in New Zealand where it is worth $24 million.
"We need to access capital to be able to keep investing in these ventures as they grow, and also to invest in new ventures created here in Australia and in New Zealand," he said.
"We've spent quite a lot of time in the past few months talking to Australian universities and there are quite a lot of opportunities we're looking at."
Powerhouse has stakes of 25 per cent and 40 per cent in each of the 19 companies and a modest initial investment is usually around $500,000, up to $1 million, but this limit is about to be increased to $3 million.
But in addition to providing capital, Powerhouse also sets up the company with a strong management team and provides it with the necessary connections to start growing the company and building a customer base.
Other businesses Powerhouse has commercialised are focused around four main industries – cleantech and engineering, ICT, agritech and medical and healthcare technology.
Mr Hampson said that since 2010 it had generated an internal rate of return on its investment portfolio of 30 per cent each year.
"With the right support, guidance and well-timed investment, these ideas can be grown to achieve significant commercial success," he said.

According to The Australian Financial Review recently, worker concessions and 500 job cuts at BlueScope's Port Kembla steelworks have underpinned a massive $50 million lift in the steelmaker's half-year earnings expectations to $230 million.
The profit upgrade suggests the future of the iconic plant in Wollongong, an hour south of Sydney, has been secured just months after a line-ball decision to keep producing raw steel at the site.
BlueScope said in August it needed to cut $200 million of costs from the plant or the remaining No. 5 blast furnace would be mothballed, endangering 5000 direct and indirect jobs.
BlueScope also secured a payroll tax holiday from the state of NSW. The Baird government agreed to defer $60 million in state payroll taxes over three years in a bid to prevent BlueScope from shutting the blast furnace.
"The stronger performance has been driven largely by earlier delivery of cost reductions, growth in Australian domestic dispatches and better margins," the company said.
Stronger demand for BlueScope's higher-margin Colorbond and Zincalume products, driven by the east coast housing boom, and a recovery in steel spreads are also boosting earnings.
BlueScope shares surged 14 per cent to $4.99 at 1.30pm AEDT on Friday.
Perpetual portfolio manager Vince Pezzullo said the Port Kembla steelworks had embarked on a process of continuous improvement to stay internationally competitive.
"We are at the bottom of the steel cycle in North America. In Australia it is all about costs," he said.

According to The Asahi Shimbun recently, a vital “cancer killer” cell in the human body that helps fight tumours and pathogens has been reproduced by a Kyoto University-led team, offering new hope to cancer patients.
The study marks the first time that natural killer T (NKT) cells have been reproduced from induced pluripotent stem (iPS) cells. NKT cells stimulate cells that patrol the immune system in search of cancer cells and pathogens, along with cells that attack them.
The study, which may lead to a breakthrough in cancer treatment, was published in the online version of the U.S. scientific journal Stem Cell Reports on Feb. 9.
Scientists have previously successfully replicated the cells that keep watch over the immune system or attack pathogens from iPS cells, but this is the first time that NKT cells have been produced from them.
Although NKT cells play a vital role in the human immune system, they do not exist in large numbers in the human body, and their numbers are believed to drop lower in cancer patients.
The achievement opens up the possibility of acquiring NKT cells in large numbers if they can be produced from iPS cells, which can be cultivated infinitely.
“The combination of iPS-derived NKT cells with other immune cells could lead to the development of a wide variety of treatments,” said Shin Kaneko, a leading member of the study group who is an associate professor of cellular biology at the university’s Centre for iPS Cell Research and Application.
The study group focused on NKT cells that react to a certain kind of glycolipid and are known to exhibit an especially strong reaction to cancer cells.
The scientists extracted these NKT cells from the blood of healthy donors and transformed them into iPS cells, which later successfully turned back into NKT cells.
When the iPS-derived NKT cells were tested on leukemic cells, they were observed inducing other cells to attack cancer cells while they attacked the tumours themselves.